Embargo till 5 p.m. Tuesday 1 June 2010

Embargo till 5 p.m. Tuesday 1 June 2010 Nat ional Corruption Perception Surv ey TI Pak istan 2010 1st June 2010 Page 1 of 205

TRANSPARENCY INTERNATIONAL-PAKISTAN 5-C, 2 ND FLOOR, KHYABAN-E-ITTEHAD, PHASE VII, DEFENCE HOUSING AUTHORITY, KARACHI PHONE : (0092-21) 5390408-9 FAX : (0092-21) 5390410 E-MAIL : ti.pakistan@gmail.com WEBSITE : www.transparency.org.pk Page 2 of 205

Contents Page No Foreword 05 IBA Note 09 Objective of the Survey 11 Strategy 12 Sample 13 Survey Findings 15 Pakistan at a Glance 18 Country Profile 19 Respondents Profile 25 Opinion on Corrupt Sectors 44 Sectors Analysis Tax 117 Local Govt. 122 Page 3 of 205

Judiciary 128 Custom 134 Police 140 Power 149 Land Administration 158 Health 168 Education 186 Tendering / Contracting 197 Page 4 of 205

Foreword Similar to the NCPS 2002, NCPS 2006 and NCPS 2009, NCPS 2010 comprises the perception of levels and frequency of corruption faced by common Pakistanis on a daily basis. Unlike the previous surveys, the corruption comparison of corruption between present and previous federal and provincial previous governments has been more detailed this time, as the respondents on each province is asked to given his opinion about his own provincial governments performance, and also the federal government performance. Another aspect of the survey is the opinion of general public on few very important governance issues. They are, 1. National Corruption Perception Survey 2010 has revealed that police remains the most corrupt sector, Power was seen as 2 nd most corrupt and Land administration has moved up from being 4 th corrupt since the last two surveys to being third. 2. Vast majority of people considered the past Federal government to be cleaner. This is quite similar if we look at the response towards provincial governments, except Punjab. However, if we look at the results from provinces from a standalone point of view, Punjab is the only province where present provincial government is cleaner than previous provincial government. 3. Pakistanis continued to believe that private sector is less corrupt than the government sector. Builders/Contractors according to those who think private sector is more corrupt, leads from all private sector avenues. This is quite in line with the rise in rank of land administration among the most corrupt sectors. 4. Most important cause of corruption, according to Pakistanis, is lack of accountability. Lack of merit and low salaries follow it. Following this trend Pakistanis wanted accountability of public officers, appointment on merit and adequate salaries as the remedies for corruption. Page 5 of 205

5. Introduction of motorway police has definitely reduced corruption in the nation and about 87% of Pakistanis considered that motorway police should be established in all the four provinces of Pakistan. 6. A significant population has declined for the extension of civil servants and likewise it was a clear perception that arm forces retirees should not be given opportunity to work as civil servants. 7. Land allocation through allotment and auction seems quite equal. Nevertheless, auction still received higher weight.. 8. Promotion of BPS 20 grade officers should be by public service commission and not head of government, according to the people of Pakistan. This may be because there is a clear discontent with lack of merit. 9. Armed forces should also come under the accountability check. This is quite consistent with the biggest reason of corruption, lack of accountability. 10. Media s freedom has been quite supported. 11. Almost 89% of Pakistanis consider that land records should be computerized and published. 12. The average corruption per household has increased from Rs 9,428 in 2009 to Rs 10,537 and judiciary and land administration lead this list. 13. The average expenditure on bribery/household is Rs 10,537. Based on a population of 169.58 million and 8 members/house, the cost of petty bribery works out to Rs 223 billion, i.e. an increase of 11.37 % from 2009 which was Rs. 196 Billion. This year, the Survey has been entrusted to the Institute of Business Administration and three Universities of Punjab, Khyber Pakhtunkhwa and Balochistan with objective to enhance the credibility of the NCPS and also to develop knowledge of University Students on public survey mechanism. 2010 Ranking 2009 Ranking 2006 Ranking 2002 Ranking 1. Police Police Police Police 2. Power Power Power Power Page 6 of 205

3. Land Admin Health Judiciary Taxation 4. Education Land Admin Land Admin Judiciary 5. Local Government Education Taxation Custom 6. Judiciary Taxation Custom Health 7. Health Judiciary Health Land Admin 8. Taxation Local Govt. Education Education 9. Custom Custom Railway Railway 10. Tendering and contracting Tendering contracting and Bank Bank Transparency International Pakistan expects the federal government, provincial governments and private sector to take advantage from this survey and improve upon the sectors which are identified as very low on governance, and more corrupt. In NCPS 2009 a note was addressed to the Chief Justice Pakistan, Transparency International Pakistan demands from the Chief Justice Iftikhar Muhammad Chaudhry to take measures for the Rule of Law in Pakistan, as promised during the restoration of judiciary movement to the citizen of Pakistan. All rules shall be made applicable without further loss of time. To start with, all those departments who are violators of Public Procurement Rules 2004, shall be made accountable by the Supreme Court, in such manner that in future no one dare violates procurement rules. TI Pakistan congratulates Pakistan Judiciary on the Supreme Court order given on 28th April 2010 in case of disputed award of multibillion dollar LNG contract to GDF-Suez, in which the SC has announced that Here we may observe that it is duty of the court to ensure that the Public Procurement Regulatory Authority Ordinance 2002 read with the Public Procurement Rules 2004 are adhered strictly to exhibit transparency. Page 7 of 205

The support and sponsorship in regard to this survey by the USAID and Swiss Agency for Development and Cooperation is highly appreciated by TI-P. We also acknowledge and commend the efforts and formulation made by the team of students and Prof. Shabih Haider of Karachi for this survey. the Institute of Business Administration, S yed Adil Gilani 1 st June, 2010 Chairman Transparency International Pakistan Page 8 of 205

IBA Note Good Governance is a burning issue in Pakistan. IBA produces graduates that manage different organizations at different levels and in various capacities. It is very essential for our students to be aware of ground realities and existing problems of our systems. Transparency International, through this survey and analysis project provided an opportunity to our students to: 1. Observe the objective realities themselves 2. Conduct a live survey on primary level 3. To analyze this gathered data to come up with meaningful information On behalf on Institute of Business Administration, Karachi, we express our gratitude to Transparency International for providing us with the opportunity to gather and analyze their gathered data on National Corruption Perception Survey. IBA, Karachi conducted survey directly through our students in Sindh, performed coding of questionnaires, compilation of data, analysis of data and prepared the results and findings of National Corruption Perception Survey 2010. The students of GIFT University Gujranwala in Punjab, of Gomal University DI Khan in Baluchistan and Sarhad University of Science and Information technology, Peshawar in province of Khyber Pakhtunkhwa conducted the surveys i.e. primary data collection in their respective provinces. The idea of this research was to find what people perceive about corruption. It includes general perceptions along with the perceptions towards specific sectors. These include: 1. Police 2. Judiciary 3. Power 4. Custom 5. Taxation Page 9 of 205

6. Land Administration 7. Health 8. Education 9. Tendering & Contracting 10. Local Government Institute of Business Administration, Karachi takes complete responsibility of analysis and ensures complete integrity. Prof. Shabih Haider, IBA Page 10 of 205

Objectives 1. The overall objective of the survey was to measure the perceptions, nature and extent of corruption being faced by consumers of the following ten public sector departments: A. Police B. Custom C. Judiciary D. Health E. Power F. Education G. Land Administration H. Local Government I. Taxation J. Tendering & Contracting 2. Another objective of the survey was to gather information about the particular stages where obstacles are usually being faced, to locate the responsible element for creating the obstacles, and the means used by the user for overcoming the bottlenecks in the ten sectors under study. 3. Transparency International expects the country s concerned provincial chapters to use the findings of the survey as pressure techniques and to facilitate and motivate the various sectors heads for rectification of the prevalent situation. 4. The information gathered is to be shared by the South Asian countries in their respective governments, by their policy makers, the other stake holders and the media. 5. The objective is also to assess the changes which have occurred from the first phase of the survey, conducted in the year 2002 till the present time period, 2010. Page 11 of 205

Strategy The sample size of 5200 was decided by Transparency International, Pakistan. From each province, 1300 questionnaires were filled. For each province, five cities were selected that were deemed to be representative of the population by Transparency International Pakistan. The data was collected in a way that diversity is ensured i.e. people interviewed belonged to diverse socio-economic classes. All of the 5200 interviewees were asked Section A that pertained to general perception regarding corruption. However, Section B pertained that pertained to perceptions regarding individual sectors. These questions were only asked from people who had taken service from them. Questionnaire was designed by Transparency International Pakistan and the universities were given the task of carrying out these. After data collection was completed, all the questionnaires were sent to Institute of Business Administration, Karachi, where all the data was coded and analyzed in their dedicated PhD lab. Page 12 of 205

Sample Unfortunately, in Pakistan, there is lack of valid statistical data, if there is any. In order to make research as accurate as possible, simple random sampling was used to avoid any biases. Hence, each member of the population had equal chance of being selected in the population. The data collection was carried out by university students, who were trained in research methods. All the university teams were briefed about the subject matter and faculty of respective institutions supervised in order to ensure honesty and integrity in the fieldwork. The data was collected by visiting the markets, educational institutes, clinics, public places and residential places in order to obtain diverse sample. The sample population was ensured complete privacy and confidence was won because students were collecting data. Page 13 of 205

Sample Locations Sindh In Sindh, data was collected from the following cities: 1. Karachi 2. Mirpurkhas 3. Larkana 4. Hyderabad 5. Thatta Punjab In Punjab, data was collected from the following cities: 1. Sialkot 2. Gujranwala 3. Daska 4. Lahore 5. Chakwal Baluchistan In Baluchistan, data was collected from the following cities: 1. Quetta 2. Chamman 3. Lora Lai 4. Pishin 5. Zhob Khyber Pakhtunkhwa In Khyber Pakhtunkhwa, data was collected from the following cities: 1. Peshawar 2. Mansehra 3. Abbotabad 4. Haripur Page 14 of 205

Survey Findings 1 National Corruption Perception Survey 2010 ahs revealed that police remains the most corrupt sector according to the perceptions of Pakistanis. The proportion of people disturbed has also increase by about 10%. One reason could be that an individual interacts the most with the police sector. It is rather inevitable. Therefore, this provides a justification for 1 st position of police since last four years. 2 Power was seen as 2 nd most corrupt sector yet again as there was a rise of 22.22% in its rating as the most corrupt. The ongoing power shortages could provide a justification of this perception. 3 Land administration has moved up from being 4 th corrupt since the last two surveys to being third. It is quite significant because land administration was seen as the one with highest amount of corruption taken. Although there is a big dispute of Land Mafia in Sindh, plausible explanation for all over Pakistan is not quite understandable. 4 It is quite evident that majority of Pakistanis find that corruption is given under duress. People had the opinion that in surging inflation, why would a sane person pay extra to get petty jobs done or get away from something you haven t done. 5 Vast majority of people considered the past Federal government to be cleaner. This is quite similar if we look at the response towards provincial governments, except Punjab. However, if we look at the results from provinces from a standalone point of view, Punjab id the only province where present provincial government is cleaner than previous provincial government. 6 Pakistanis continued to believe that private sector is less corrupt than the government sector. Builders/Contractors according to those who think private sector is more corrupt, leads from all private sector avenues. This is quite in line with the rise in rank of land administration among the most corrupt sectors. Page 15 of 205

7 Strangely, accountability has been called for to reduce corruption in the private sector. This may be because of philosophical opposition with capitalism. This is also reflected in some other factors as well. 8 Most important cause of corruption, according to Pakistanis, is lack of accountability. Lack of merit and low salaries follow it. Following this trend Pakistanis wanted accountability of public officers, appointment on merit and adequate salaries as the remedies for corruption. 9 The perception towards media has been quite shifted this time. Only half of the people now believe that they are satisfied in resisting against corruption. This is a clear shift in perception. Jang and regional newspapers are leading in the effort against corruption. While among the TV channels, Geo News and Express are considered as the best among raising the voice against corruption. Private radio is considered as the better part of radio in terms of putting in effort against corruption. 10 Propaganda paid by political parties and false reporting leads the way in the weakness of media. Media s current role in combating corruption is because of propaganda, according to the people of Pakistan. Nevertheless, media should be exposing corruption. 11 Introduction of motorway police has definitely reduced corruption in the nation and about 87% of Pakistanis considered that motorway police should be established in all the four provinces of Pakistan. 12 A significant population has declined for the extension of civil servants and majority considered that all those, who have been given extension, should be terminated. This view is quite warranted because of high unemployment rate. People were highly concerned that new people should be given chance. 13 Likewise it was a clear perception that arm forces retirees should not be given opportunity to work as civil servants. This is not just because of discomfort with armed forces among the masses but also it is because of unemployment rate. Page 16 of 205

14 Land allocation through allotment and auction seems quite equal. Nevertheless, auction still received higher weight. If there is auction given that only people from similar income classes are present, the method could be efficient. 15 Promotion of BPS 20 grade officers should be by public service commission and not head of government, according to the people of Pakistan. This may be because there is a clear discontent with lack of merit. 16 National accountability bureau was believed as a good institution. Judiciary and Armed forces should also come under the accountability check. This is quite consistent with the biggest reason of corruption, lack of accountability. 17 Media s freedom has been quite supported. It was argued that responsible freedom should be practiced. Propaganda and false reporting should be abolished. 18 Almost 89% of Pakistanis consider that land records should be computerized and published. This is quite in line with the rise of land administration s ranking as the most corrupt sector and builders being the most corrupt among the private sector. 19 Pakistanis were not satisfied with the redress of complains by the federal, provincial and local government. However, as we move from macrocosm of federal government to microcosm of local government, we see that people s satisfaction has increased. 20 The average corruption per household has increased from Rs 9,428 in 2009 to Rs 10,537 and judiciary and land administration lead this list. 21 The average expenditure on bribery/household is Rs 10,537. Based on a population of 169.50 million and 8 members/house, the cost of petty bribery works out to Rs 223 billion, i,e, an increase of 11.37 % from 2009, which was Rs. 196 Billion Prof. Shabih Haider, IBA Page 17 of 205

Pakistan at a Glance Population 169588500 Area Covered Population growth rate Sex ratio Fertility rate Infant mortality rate 796, 096 sq. km. 1.6% per annum 51.7% Male, 48.3% Female 3.28% per annum 65.34 (per 1000 live birth) Literacy rate Both Sexes 49.90% Male 53% *Female 36% Religions 1.85%, Others 0.55% Muslim 96.0%, Christian 1.6%, Hindu Estimated Population of Pakistan 169 million according to www.pakistan.gov.pk as of May, 2010. *CIA World Fact Book Page 18 of 205

Country Profile THE UNIVERSE Pakistan as an independent state had come on the world map on August 14th, 1947. Its total area is 796,096 sq. kilometers. The country comprises of four provinces namely, Punjab, Sindh, Khyber-Pakhtunkhwa and Balochistan. Its capital is the city of Islamabad located in the Punjab province. Each province is divided into administrative divisions, and each division into districts, tehsils/ talukas, village and union councils; there are 28 divisions, 106 districts, 376 tehsils/ taukas, 46, 144 villages and 4, 147 union councils in the country. POPULATION Pakistan with an estimated population of 169 million in 2010 is the 6th most populous country in the world. The population of the area now constituting Pakistan has increased ten fold since 1901; half added during post independence period. In absolute numbers; almost 128 million people have been added to the population during the last 58 years (1951 2008). Annual growth rates have risen from 1% in the first three decades of the country to around 2 percent in the next three decades after peaking over 3 percent in the 1960s and 1970s and then below 3 percent in the 1990s. The country s population is estimated to double in the year 2045 if it continues to grow at 1.6 percent. The population density has increased to 210 persons per square kilometer today from 42.5 persons per square kilometer in 1951 which is almost a five time increase. Movement of population to urban areas, attributed to the Page 19 of 205

well known pull and push factors continues, and as a result the urban population has increased from 6 million in 1951 to today s 60 million. Selected Demographic Indicators: Indicators Latest Available Total Fertility Rate (TFR) 2007 07 3.13 Crude Birth Rate (CBR) 2007 08 25.0 Crude Death Rate (CDR) 2007 08 7.70 Population Growth Rate 1.60 Infant Mortality Rate (IMR) 2007 08 70.20 Maternal Mortality Rate (MMR) 2004 05 350 400 Life Expectancy at Birth 2007 08 Male: 64 Years, Female: 67years Source: Economic Survey 2008 09 Govt. of Pakistan Finance Division. Page 20 of 205

EDUCATION According to the Pakistan Social and Living Measurement (PSLM) Survey data (2007 08), the overall literacy rate (age 10 years and above) is 56.2% (68.2% for male and 43.6% for female) in 2007 08 compared to 55% (67% for male and 42% for female) in 2006 07. Literacy remains higher in urban areas (71%) than in rural areas (49%) and more in men (69%) compared to women (44%). When analyzed provincially, literacy rate in Punjab stood at (59%) followed by Sindh (56%), Khyber-Pakhtunkhwa (47%) and Balochistan at (42%). The literacy rate of Punjab and Balochistan has improved considerably during 2004 05 to 2007 08. Adult literacy rate (age 15 and above) has also increased from 50% in 2004 05 to 54% in 2006 2007. Educational Institutions by Sector and Provinces (in 2008): Area Public Private Total Pakistan 179,364 73,611 252,975 Punjab 62,539 38,841 101,380 Sindh 49,415 9,613 69,028 Khyber Pakhtunkhwa 26,997 6,363 33,360 Balochistan 11,950 858 12,808 FATA 5,468 430 5,898 AJK 6,048 1863 7,911 Page 21 of 205

ICT 412 487 899 Source: Pakistan Education Statistics 2008 Number of Educational Institutions: Category Institutions 2006 07 2007 08 Primary + Mosque 158,378 156,592 Middle 42,918 40,829 High 25,177 23,964 Higher Sec/Inter 3,332 2,432 Degree Colleges 1,371 1,202 Total 231,176 225,019 Source: Pakistan Education Statistics MoE Islamabad Page 22 of 205

HEALTH With reference to demographic transition Pakistan stands in the list of one of the world s most populous countries with a population of 169 million. Although the annual population growth rate has declined from over 3 percent in 1960s and 1970s to present level of 1.6 percent per annum, it still remains high. Human Resource Available (2007): Years 2007 MBBS Doctors 127,859 Dentists 8,195 Nurses 62,651 Midwives 25,261 Lady Health Visitors (LHVs) 9,302 Population per Doctor 1,225 Population per Dentist 19,121 Population per Nurse 2,501 Population per Midwife 6,203 Population per LHVs 16,845 Page 23 of 205

Sources: Pakistan Medical and Dental Council (PMDC) and Pakistan Nursing Council (PNC), Islamabad *Social Indicators health (Estimated): Country Life Expectancy Year 2010 Infant Mortality Rate Per 1000 Year 2010 Female Male Pakistan 67.49 63.84 65.3 India 67.57 65.46 49.13 Sri Lanka 77.47 73.22 18.14 Bangladesh 50.49 64.80 57.78 Nepal 67.05 64.62 46.0 China 76.77 72.54 16.51 Thailand 75.82 71.02 16.91 Philippines 74.45 68.45 19.94 Malaysia 76.48 70.81 15.37 Indonesia 73.69 68.53 28.94 *CIA World Fact Book Page 24 of 205

Respondent Profile 1.2 Respondent Status Frequency Percent Household Head 2243 43.1 Household member 2957 56.9 Total 5200 100.0 Province wise breakup The total numbers of respondent in the survey were 5200. Out if this, 2243 (43.1) were household while the remaining 2957 (56.9) were members. In Khyber Pukhtoonkhwa, 42% of the respondents were household members and 58% were household heads. Page 25 of 205

In Balochistan, 63% of the respondents were household members and 37% were household heads. In Punjab, 64% of the respondents were household members and 36% were household heads. Page 26 of 205

In Sindh, 63% of the respondents were household members and 37% were household heads. Page 27 of 205

1.3 Gender Frequency Percent Male 4866 93.6 Female 334 6.4 Total 5200 100.0 Out of 5200, only 334 (6.4%) of the respondents were female. This is mainly because of the main dominated society of Pakistan, where it is not considered appropriate for females to talk or roam around the city. Page 28 of 205

Province Wise Breakup Pukhtoonkhwa, 95% were males and 5% were females. In Khyber In Baluchistan, 97% were males and 3% were females. Page 29 of 205

In Punjab, 96% were males and 4% were females. In Sindh, 86% were males and 14% were females. 1.4 Age Frequency Percent 18-23 1360 26.2 24-28 1355 26.1 Page 30 of 205

29-35 523 10.1 36-40 556 10.7 41-45 706 13.6 46-50 248 4.8 51-55 297 5.7 56-60+ 155 3.0 Total 5200 100.0 Most of the respondents of the survey were the from the age bracket of 18-28. They account for more than 50% of the respondents. The youth of this country seemed more willing to answer this survey than the older generation. Apart from this, 10.1% of the respondents were from the age bracket of 36-40 years old, while 13.6 were from 41-45. The adult and the senior represented 13.5% of the respondents. Page 31 of 205

Province wise Breakup In Khyber Pukhtoonkhwa, majority of the respondents were from the age bracket of 24-28 (60.0%). In Balochistan, majority of the respondents were from the age bracket of 18-23 (33.9%). Page 32 of 205

In Punjab, majority of the respondents were from the age bracket of 24-28 (29.2%). In Sindh, majority of the respondents were from the age bracket of 18-23 (29.5%). Page 33 of 205

1.4 Marital Status Frequency Percent Married 2982 57.3 Unmarried 2145 41.2 Separated 9.2 Divorced 22.4 Widow/err 43.8 Total 5200 100.0 Of the respondents, 57.3 were married while 41.2 were unmarried. 0.2, 0.4 and 0.8 were separated, divorced or Widow/err respectively. Page 34 of 205

Province wise Breakup In Khyber Pukhtoonkhwa, majority of the respondents were married (60.0%). In Balochistan, majority of the respondents were married (59.5%). Page 35 of 205

In Punjab, majority of the respondents were married (54.3%). In Sindh, majority of the respondents were married (55.7%). Page 36 of 205

1.6 Education Frequency Percent Illiterate 812 15.6 Informal 102 2.0 Primary 247 4.7 Secondary 513 9.9 Intermediate 1138 21.9 Graduate 1546 29.7 Post-Graduate 478 9.2 Professional Degree 340 6.5 Other 24.5 Total 5200 100.0 Most of the respondents were literate with only 17.6% having less than primary education (15.6% illiterate and 2% informal). 4.7% of the respondents had done at least primary while 9.9% had done at least secondary. The highest number of forms filled was by the people with graduate degrees (29.7%). Intermediate grads were next with 21.9%. Post-graduate and professional degrees accounted for 15.7%. Page 37 of 205

Province Wise Breakup Majority of the respondents in Khyber Pukhtoonkhwa were graduates (46.5%). Majority of the respondents in Balochistan were illiterate (38.4%). Page 38 of 205

Majority of the respondents in Punjab were Intermediates (26.2%). Majority of the respondents in Sindh were Graduates (31.4%). Page 39 of 205

1.7 Occupation Frequency Percent Service 1174 22.6 Business 815 15.7 Lawyer 102 2.0 Farmer 378 7.3 Fisherman 22.4 Labourer 274 5.3 Student 1072 20.6 Unemployed 189 3.6 Self-employed 469 9.0 Housework 149 2.9 Zamindar 309 5.9 Retired 115 2.2 Other 131 2.5 Total 5200 100.0 Page 40 of 205

22.6% of the respondents belonged to service, both private and government, 15.7% were doing business, 7.3% were farmers and 20.6% were students. 9% of the respondents were self-employed. Most of the people in Khyber Pukhtoonkhwa were in the Service Sector (26.5%) Page 41 of 205

In Balochistan, majority of the respondents were Farmers (22.3%) or affiliated with the service Sector (22.3%). In Punjab, the majority of the respondents were from the Service Sector (19.5%) Page 42 of 205

In Sindh, majority of the respondents were Students (23.3%). Page 43 of 205

1.8 Family Composition No. of M ales and Females in Household No. Percentage Average People per house Males 20372 53.02 4 Females 18302 47.63 3 Total 38674 100.65064 7 An average household contains 47% of females and 53% of males. The total number of people living in a household is 7, of which 4 are males and 3 are females. Age of Household Members No. Percentage No. of Infants (0-1) 1964 5.11 No. of Child (2-4) 4002 10.41 No. of Young (5-14) 7334 19.07 No. of Adult (15-59) 23402 60.85 No. of Old (60+) 1972 5.13 Total 38674 100.56 Page 44 of 205

Adult (15-59) represent the highest percentage in an average household with 60.85%. The Young (5-14) and Children (2-4) come immediately after with 19.07% and 10.41% respectively. Page 45 of 205

1.11 Earners The majority of our respondents, 58.7%, had one full-time earner in their family. This is almost twice as compared to the 23.7% respondents who had two earners in the family. The majority of our respondents, 83.4%, had no part-time earners in their families. This figure was even higher i.e. 98.5%, for those having other means of earnings. The highest representation was that of full-time earners, who made up 84% of our sample, followed by part-time earners making up 13% of our sample, which is a 5% increase from the survey conducted last year. The rest of the 3% had other ways of earning their living. Increase in other forms of earning, as well as the rise of part-time jobs, can be used as a measure to explain the lower representation of full-time earners in this year s survey, as compared to the survey conducted in 2009. No. Of Earning Persons Total Percent Full Time 7714 84% Part time 1222 13% Other 232 3% Total 9168 100% Page 46 of 205

Most households had one full-time earner. Page 47 of 205

Very few households had part-time earners. The sample consisted of very few seasonal workers. 1.13 Household Assets 26% of the respondents had cars, 54% had motorbikes and an astonishing 85% owned television sets. 44% of the respondents owned computers, which is due to factors such as city-dwellers being included in the sample, as well as the Page 48 of 205

availability of cheap second-hand computers being easily available in the markets. Keeping up with the cellphone boom in the country, it is no surprise that cellphones were the dominant asset possessed by the majority of our sample, with at-least 9239 units being possessed amongst the 5200 households in the survey. Due to respondents trying to appear Assets Units Independent Percentages No. of Cars 1586 26.0% No. of Motorbikes 3174 54.0% No. of TV 5258 85.4% No. of Refrigerators 3939 69.0% No. of Acs 2306 31.0% No. of Cellphones 9239 79.0% No. of Computers 2579 44.0% No. of CD/DVD Players 1321 22.0% Page 49 of 205

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Assets Sindh Punjab Balochistan KP Total No. of Cars 343 398 295 522 1558 No. of Motorbikes 889 1089 775 364 3117 No. of TV 1308 1425 1202 1276 5211 No. of Refrigerators 1050 1029 615 1165 3859 No. of Acs 541 710 103 823 2177 No. of Cell phones 1591 3223 1980 2097 8891 No. of Computers 591 745 403 762 2501 No. of CD/DVD Players 377 383 248 289 1297 Total 6690 9002 5621 7298 28611 *Differences with actual data might occur due differences in calculation methods Page 51 of 205

The respondents from Punjab had the largest share of motorbikes, TVs, cell phones and CD/DVD players. The respondents from Khyber Pukhtoonkhwa meanwhile had the dominant share of Cars, refrigerators, ACs and computers. The reasons for this could include the respondents being mostly from urban areas, as well as the lack of proper electricity supply in many cities of Sindh, such as Thatta and Hyderabad, effectively ruling out the possibility of running electronic appliances. Page 52 of 205

1.12 Monthly Income Group Monthly Income Group Frequency Percent Rs. 5000 or less 338 6.5 Rs. 6000-10000 719 13.8 Rs. 11000-15000 1066 20.5 Rs. 16000-20000 1097 21.1 Rs. 21000-30000 1248 24.0 Rs. 31000 and 730 14.0 above Total 5200 100.0 Page 53 of 205

The monthly income group of Rs. 21000-30000 had the highest representation in our survey, accounting for 24% of the total responses received. The groups Rs.16000-20000 and Rs.11000-15000 closely follow behind with 21.1% and 20.5% share respectively. Respondents usually do not like disclosing their household income, therefore the possibilities of over- and under-stated income figures exists, therefore these figures need to be interpreted wisely. The high incomes can be explained by the fact that most of our respondents were fulltime earners had graduate-level education. Page 54 of 205

As shown in the above graph, the largest representative income group from Sindh earned between Rs. 6000-10000 per month. The largest representatives from Punjab and Khyber Pukhtoonkhwa earned between Rs. 21000-30000 per month. For Balochistan, the highest representing group earned Rs. 11000-15000 per month. Once again it must be emphasized that these figures might differ from actual representation due to respondents either over-stating, understating or hiding their true incomes, hence care must be taken before any inferences are made. Page 55 of 205

1.14 Ownership of House Ownership of House Frequency Percent Own House 4316 83.0 Rental House 688 13.2 From 186 3.6 Employer/ Govt Other 11.2 (specify) Total 5200 100.0 As shown in the table above, 83% of the respondents taking part in the survey were home owners. Around 13% said they were living on rent, 3.6% were provided homes by the government or their employers, while the rest lived under other arrangements. Page 56 of 205

Across all provinces, most respondents were house owners. Page 57 of 205

2.1 The most corrupt sector Page 58 of 205

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1. The most corrupt sector (COMPARATIVE) Sectors Percentage 2010 Percentage 2009 Percentage 2006 Percentage 2002 Police 38 35 64 28 Power 22 18 11 15 Health 5 10 2 5 Land Admin 8 9 5 5 Education 7 7 1 3 Taxation 3 5 4 13 Judiciary 6 5 9 10 Local Govt. 7 5 - - Custom 3 4 4 9 Tendering 1 2 - - and contracting Bank - - 1 1 Railway - - 1 2 Page 60 of 205

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Expenditure on bribery in Rupees Nos Respondent paid bribery Bribery Paid per Act Sector Punjab Khyber Pukhtoonkhwa BALOCHISTAN SINDH Total (Rs) (Rs) (Rs) (Rs) (Rs) Rs. Police 6547900 1331750 275150 1860340 10015140 1328 7541.52 Judiciary 8310500 1161700 108800 4919650 14500650 459 31591.83 Power 505700 281100 294750 705100 1786650 762 2344.69 Land Administration 2370200 759000 1700500 10162000 14991700 323 46413.93 Taxation 509100 303500 39000 883500 1735100 184 9429.89 Custom 4358500 340500 22100 221000 4942100 208 23760.10 Health 147650 12500 49250 71150 280550 284 987.85 Education 149200 69200 129900 227400 575700 359 1603.62 Local Govt. 111300 77700 5000 16700 210700 170 1239.41 Tendering and Contracting 119000 250000 2501000 2884000 5754000 147 39142.86 Total 23129050 4586950 5125450 21950840 54792290 Average expenditure on bribery is around Rs. 10,537/ on 5200 Respondents. Page 62 of 205

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Expenditure on bribery in Rupees Sector Punjab Khyber Pukhtoonkhwa SINDH BALOCHISTAN Total Percentage (Rs) (Rs) (Rs) (Rs) (Rs) % Police 6547900 1331750 1860340 275150 10015140 18.28 Judiciary 8310500 1161700 4919650 108800 14500650 26.46 Power 505700 281100 705100 294750 1786650 3.26 Land Administration 2370200 759000 10162000 1700500 14991700 27.36 Taxation 509100 303500 883500 39000 1735100 3.17 Custom 4358500 340500 221000 22100 4942100 9.02 Health 147650 12500 71150 49250 280550 0.51 Education 149200 69200 227400 129900 575700 1.05 Local Govt. 111300 77700 16700 5000 210700 0.38 Tendering and 119000 250000 2884000 2501000 5754000 10.50 Contracting Total 23129050 4586950 21950840 5125450 54792290 100.00 Page 64 of 205

Average expenditure on bribery is around Rs. 10,537/ on 5200 Respondents. Page 65 of 205

Average Expenditure on bribery in Rupees Page 66 of 205

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Average expenditure on bribery in provinces Province Respondents Average Expenditure (Rs) Punjab 1300 17791 Khyber Pukhtoonkhwa 1300 3528 Sindh 1300 16885 Balochistan 1300 3943 Page 70 of 205

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Sector Respondents Average Expenditure (Rs) Police 1328 7542 Judiciary 459 31592 Power 762 2345 Land Administration 323 46414 Taxation 184 9430 Custom 208 23760 Health 284 988 Education 359 1604 Local Govt. 170 1239 Tendering and Contracting 147 39143 Page 72 of 205

2010 Ranking 2009 Ranking 2006 Ranking 2002 Ranking 11. Police Police Police Police 12. Power Power Power Power 13. Land Admin Health Judiciary Taxation Land Land Judiciary 14. Education Admin Admin 15. Local Education Taxation Custom Government 16. Judiciary Taxation Custom Health Page 73 of 205

Judiciary Health Land 17. Health Admin 18. Taxation Local Govt. Educa tio n Educa tio n 19. Custom Custom Railway Railway 20. Tendering and contracting Tendering and contra ctin g Bank Bank 2.2 Why public is involved in encouraging corruption Percentage Frequency Under Duress 71.22 3703 Voluntarily 28.78 1497 Total 100 5200 Page 74 of 205

2.3 Which federal government was cleaner Percentage Pakistan Khyber Sindh Punjab Pukhtunkhwa Balochistan Present (2008-2010) 29.35 1526 326 501 209 495 Past 70.65 3674 974 799 1,091 805 Total 5200 1,300 1,300 1,300 1,300 Page 75 of 205

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2.3 Which provincial government was cleaner Punjab % Sindh % Khyber Pukhtunkhwa % Balochistan % Present (2008-2010) 687 52.84% 493 37.9% 286 22% 486 37.3% Past 613 47.15% 807 62.07% 1,014 78% 814 62.6% Total 1,300 1,300 1,300 1,300 Page 77 of 205

2.4 Private sector is more corrupt than Government Percentage Frequency Yes 25.56 1329 No 74.44 3871 Total 100 5200 Page 78 of 205

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2.4.1 Corruption faced in Private Sector Percentage Frequency Banking 9.91% 332 Telecommunication 9.64% 323 Builders/Contractors 20.04% 671 Private Hospitals 13.50% 452 Transport Companies 13.23% 443 Fuels 7.73% 259 Automobile Industries 3.58% 120 Private Educational Institutes 11.32% 379 NGOs 11.05% 370 Total 100.00% 3349 Page 80 of 205

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2.5 Combating corruption in Private Sector Percentage Frequency Regulatory Authority 33.36 1735 Accountability 66.64 3465 Other 0.00 0 Total 100.00 5200 Page 82 of 205

2.6 Most important factor in corruption (1st Rank) Percentage Frequency Lack of accountability 61.79 3213 Lack of merit 17.26 897 lack of transparency 9.74 506 Monopoly of power 1.96 102 Power of influential people 4.32 225 Low Salaries 3.44 179 Shortages-Demand & Supply 0.40 21 Discretionary Power 0.46 24 Red Tapism 0.20 10 Others 0.44 23 Total 100.00 5200 Page 83 of 205

2.6 Most important factor in corruption (2nd Rank) Percentage Frequency Lack of accountability 4.97 258 Lack of merit 28.52 1483 lack of transparency 16.96 882 Monopoly of power 6.47 336 Power of influential people 25.66 1334 Page 84 of 205

Low Salaries 11.81 614 Shortages-Demand & Supply 2.56 133 Discretionary Power 2.41 126 Red Tapism 0.55 28 Others 0.10 5 Total 100.00 5200 Page 85 of 205

2.6 Most important factor in corruption (3rd Rank) Percentage Frequency Lack of accountability 3.10 161 Lack of merit 4.73 246 lack of transparency 7.67 399 Page 86 of 205

Monopoly of power 3.12 162 Power of influential people 15.83 823 Low Salaries 29.11 1514 Shortages-Demand & Supply 10.02 521 Discretionary Power 17.42 906 Red Tapism 8.16 424 Others 0.85 44 Total 100.00 5200 Page 87 of 205

2.7 Measures of combating corruption (1st Rank) Percentage Frequency Accountability of Public officers 64.98 3379 Appointing on merit 17.52 911 Access to Information 9.01 468 Page 88 of 205

Abolish Discretionary Power 2.15 112 Adequate Salaries 4.45 232 Privatize 0.50 26 Judicial process streamlined 1.23 64 Others 0.16 8 Total 100.00 5200 Page 89 of 205

2.7 Measures of combating corruption (2nd Rank) Percentage Frequency Accountability of Public officers 3.46 180 Appointing on merit 38.74 2015 Access to Information 20.39 1060 Abolish Discretionary Power 18.54 964 Adequate Salaries 12.12 630 Page 90 of 205

Privatize 3.05 158 Judicial process streamlined 3.48 181 Others 0.23 12 Total 100.00 5200 2.7 Measures of combating corruption (3rd Rank) Percentage Frequency Accountability of Public officers 4.60 239 Page 91 of 205

Appointing on merit 4.14 215 Access to Information 9.44 491 Abolish Discretionary Power 18.69 972 Adequate Salaries 30.12 1566 Privatize 15.29 795 Judicial process streamlined 16.58 862 Others 1.14 59 Total 100.00 5200 Page 92 of 205

2.8 Media's Role in combating corruption Percentage Frequency Positive 50.91 2647 Negative 49.09 2553 Total 100.00 5200 Page 93 of 205

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2.9 Corruption Exposing newspaper Percentage Pakistan Punjab Sindh Khyber Pukhtunkhwa Balochistan Dawn 9.15% 88 12 33 41 2 The News 4.37% 42 3 1 37 1 The Tribune 0.31% 3 0 3 0 0 The Nation 0.10% 1 0 0 0 1 Jang 36.28% 349 128 65 36 121 Nawae waqt 3.64% 35 25 5 0 5 Express 13.62% 131 87 5 38 1 Awaam 0.42% 4 1 5 0 0 Other Regional 28.07% 270 0 107 111 52 Other Non-regional 4.05% 39 0 0 39 0 Total 100 962 256 224 302 183 Page 95 of 205

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2.9 Corruption Exposing TV Channel Percentage Pakistan Punjab Sindh Khyber Pukhtunkhwa Balochistan Dawn News 2.34% 51 24 9 15 4 Geo News 64.51% 1405 461 376 358 209 Express News 14.42% 314 158 45 62 49 ARY News 4.18% 91 32 33 1 25 Samaa News 1.01% 22 14 6 3 0 AAJ News 2.16% 47 3 3 28 14 Dunya News 1.42% 31 22 3 3 3 PTV News 1.29% 28 3 23 1 0 Other Regional Channels 7.39% 161 46 24 49 41 Other Non-regional Channels 1.29% 28 7 7 7 7 Total 100.00% 2178 770 529 527 352 Page 97 of 205

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2.9 Corruption Exposing Radio Percentage Frequency Government 18.35% 51 Private 81.65% 227 Total 100.00 278 2.10 Weakness of the Media Percentage Frequency Biased Information 18.82% 1557 Page 99 of 205

False Reporting 23.73% 1963 Propoganda (under duress) 18.71% 1548 Propoganda (Paid by Political Party) 22.58% 1868 Lack of Research 13.54% 1120 Others 2.62% 217 Total 100.00 8273 Page 100 of 205

2.11 Media Exposing Practice Percentage Frequency Good 71.45 3715 Bad 28.55 1485 Total 100.00 5200 Page 101 of 205

2.12 Motorway Police Reduced Corruption? Percentage Frequency Yes 84.91 4415 No 15.09 785 Total 100.00 5200 2.13 Motorway Police Implemented In Cities? Percentage Frequency Page 102 of 205

Yes 86.71% 3828 No 13.29% 587 Total 100.00 4415 2.14 Civil Service Extension? Percentage Frequency Yes 35.76 1860 No 64.24 3340 Total 100.00 5200 Page 103 of 205

2.15 Termination Of Retired Rehired Personnel? Percentage Frequency Yes 73.02% 2439 No 26.98% 901 Total 100.00 3340 Page 104 of 205

2.16 Independent (from Govt.) Regulatory Authorities? Percentage Frequency Yes 62.83 3267 No 37.17 1933 Total 100.00 5200 Page 105 of 205

2.17 Civil Services By Retired Armed Forces Personnel? Percentage Frequency Yes 39.60 2059 No 60.40 3141 Total 100.00 5200 Page 106 of 205

2.18 Allotment or Auction Percentage Frequency Allot 45.06 2343 Auction 54.94 2857 Total 100.00 5200 Page 107 of 205

2.19 Promotion of Civil servants above BPS 20 Percentage Frequency Public Service Commission 65.93 3429 Head of Government 34.07 1771 Total 100.00 5200 Page 108 of 205

2.20 Accountability of judiciary and armed forces Percentage Frequency Yes 83.85 4360 No 16.15 840 Total 100.00 5200 Page 109 of 205

2.21 Passing of freedom info bill Percentage Frequency Yes 87.00 4524 No 13.00 676 Total 100.00 5200 Page 110 of 205

2.22 Publication of land records Percentage Frequency Yes 88.58 4606 No 11.42 594 Total 100.00 5200 Page 111 of 205

2.23 Satisfaction of redress of complaints by Federal govt. Percentage Frequency Yes 17.10 889 No 82.90 4311 Total 100.00 5200 Page 112 of 205

2.23 Satisfaction of redress of complaints by Provincial govt. Percentage Frequency Yes 23.41 1217 No 76.59 3983 Total 100.00 5200 2.23 Satisfaction of redress of complaints by Local govt. Percentage Frequency Page 113 of 205

Yes 30.14 1567 No 69.86 3633 Total 100.00 5200 3.1 Service taken from any sector in the in past 2 years Percentage Frequency Yes 70.37 3659 No 29.63 1541 Total 100.00 5200 Page 114 of 205

3.1.1 Service taken from which sector Percentage Frequency Police 31.44% 1328 Judiciary 10.87% 459 Power/KESC/WAPDA 18.04% 762 Land Administration 7.65% 323 Taxation 4.36% 184 Custom 4.92% 208 Page 115 of 205

Health 6.72% 284 Education 8.50% 359 Local Government 4.02% 170 Tendering and Contracting 3.48% 147 Total 100.00 4224 Page 116 of 205

5 Taxation 5.1 Have your household paid any tax recently? Response No Percent Yes 140 87.50 No 20 12.50 Total 160 100.00 5.1.1 If yes please furnish the following information Type of taxes No Percent Income tax 93 50.82 With Holding tax 1 0.55 Sales Tax 25 13.66 Land and Property tax 51 27.87 Others 13 7.10 Total 183 100.00 *Total has exceeded 140 because of multiple responses Page 117 of 205

5.2 Was any corruption faced by you/your household? Response No Percent Yes 95 59.4 No 65 40.6 Total 160 100.0 Page 118 of 205

5.2.1 If yes what kind of corruption did you face? Types of corruption Had to pay for under-assessment had to pay to reduce tax Had to pay to reduce fictitious assessment had to pay extra to get tax certificate Had to pay extra for releasing goods Had to pay extra to refund excess paid tax Others *Multiple responses Actors Invol ved in Corruption No Tax Officer 57 Page 119 of 205

Adjudicator 4 Tax Lawyer 6 Tax department employee 13 Land revenue officer 22 Others 3 Total 105 5.3 Which factors are responsible for corruption in taxation department? Causes of Corruption No Percent Lack of Accountability 109 26.14 Lack of Transparency 79 18.94 Discretionary Power 48 11.51 Monopoly Power 25 6.00 Low Salaries 34 8.15 Shortages 48 11.51 Page 120 of 205

Power of Influential People 34 8.15 Red-Tapism 18 4.32 Lack of Merit 22 5.28 Others 0 0 Total 417 100 *Multiple responses Page 121 of 205

9 Local Government 9.1 In your opinion which department of local government is most corrupt? Most corrupt LG department No Percent Most Corrupt Sanitation/Road 73 28. Procurement 26 10. Vaccination 68 26. Tool Tax 38 14. Birth and Death Certificate 35 13. Grave Yard Permission 19 7. Total 259 100. Page 122 of 205

9.2 For what purpose did you interact with local government? Reason for interaction No Percent Complainant 78 30.12 Attestation of Documents 39 15.06 Vaccination of Certificates 69 26.64 Seeking Permission 40 15.44 Others 33 12.74 Total 259 100.00 Page 123 of 205

9.3 At what stage interaction took place? Stage of interaction No Percent Union Council 165 63.71 Town Council 41 15.83 City Council 53 20.46 Total 259 100.00 9.4 Was any corruption faced by you/your household? Response No Percent Yes 111 42.86 No 148 57.14 Total 259 100.00 Page 124 of 205

9.4.1 If yes what kind of corruption did you face? Extra money paid to No Percent Union Council 79 71.17 Town Council 11 9.91 City Council 9 8.11 Others 12 10.81 Total 111 100.00 Page 125 of 205

Actors Involved in corruption Actor No Percent Union Council 85 76.58 Town Council 14 12.61 City Council 12 10.81 Total 111 100.00 9.5 In your opinion, which factors are responsible for corruption in local government system? Causes of Corruption No Percent Lack of Accountability 87 20.76 Lack of Transparency 65 15.51 Discretionary Power 61 14.56 Monopoly Power 32 7.64 Low Salaries 61 14.56 Shortages 32 7.64 Power of Influential People 38 9.07 Page 126 of 205

Red-Tapism 16 3.82 Lack of Merit 23 5.49 Others 4 0.95 Total 419 100.00 *Multiple responses Page 127 of 205

2 Judiciary 2.1 For what purpose did you/your household interacted with judiciary? Purpose No Percent As a complainant 236 47.87 As an accused 60 12.17 As a witness 106 21.50 As a lawyer 64 12.98 Others 27 5.48 Total 493 100.00 Page 128 of 205

2.2 At what stage took interaction took place? Stages No Percent Lower Court 290 58.82 High Court 80 16.23 Supreme Court 29 5.88 Special Court 22 4.46 Other 72 14.60 Total 493 100.00 Page 129 of 205

2.3 Was any corruption faced by you, your household? No Percent Yes 339 68.76 No 154 31.24 Total 493 100.00 Page 130 of 205

Actors Involved in corruption No Judge 44 Court employee 119 Public Prosecutor 84 Opponent Lawyer 29 Witness 50 Magistrates 16 Others 12 Total 354 *Multiple Responses Page 131 of 205

2.4 In your opinion which factors are responsible for corruption in the judiciary system? Causes of corruption No Percent lack of accountability 190 17.67 Lack of transparency 136 12.65 Lack of simple legal process 210 19.53 Discretionary power 95 8.84 Monopoly of power 29 2.70 Low Salaries 94 8.74 Shortages 77 7.16 Power of influential people 153 14.23 Red-Tapism 43 4.00 Lack of Merit 42 3.91 Others 6 0.56 Total 1075 100.00 *Multiple Responses Page 132 of 205

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6 Custom 6.1 Did you/your household interact with customs department? Response No Percent Yes 164 84.10 No 31 15.90 Total 195 100.00 6.3 What kind of service have you taken from custom department? Purpose of Interaction No Percent Goods Inspection 58 29.59 Goods Valuation 43 21.94 Survey/Valuation of Goods 56 28.57 Quick service 31 15.82 Others 196 100.00 Page 134 of 205

6.4 Was any corruption faced by you your household? Response No Percent Yes 120 61.54 No 75 38.46 Total 195 100.00 Page 135 of 205

6.4.1 If yes what kind of corruption was faced? Type Of Corruption No Percent Had to pay money for inspection of goods 58 45.31 Had to pay money for valuation of goods 31 24.22 Had to pay money for the reduction of custom duties 15 11.72 Had to pay to get benefit for inspection 8 6.25 Had to pay for quick Service 10 7.81 Others 6 4.69 Total 128 100.00 Page 136 of 205

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Actors Involved Actors No Percent Custom Officer 47 36.72 Duty Officer 60 46.88 Custom Collector 8 6.25 Custom Soldier/Sipahi 8 6.25 Others 5 3.91 Total 128 100.00 *Multiple Responses Page 138 of 205

6.5 What are the causes of corruption in the Custom Department? Causes of Corruption No Percent Lack of Accountability 93 21.93 Lack of Transparency 74 17.45 Discretionary Power 74 17.45 Monopoly Power 27 6.37 Low Salaries 49 11.56 Shortages 32 7.55 Power of Influential People 39 9.20 Red-Tapism 20 4.72 Lack of Merit 14 3.30 Others 2 0.47 Total 424 100.00 *Multiple Responses Page 139 of 205

1 Police 1.1 For which purpose, did you/ your household interact with Police Service? Purpose No. Percent To make FIR complaint 356 25.93 As Accused 98 7.14 Verification for passport 73 5.32 Verification for Job 84 6.12 Violation o Traffic law 251 18.28 Character Certificate for Immigration 28 2.04 To get release from false arrest 153 11.14 Vehicle Fitness 69 5.03 Recovery of stolen car/vehicle 114 8.30 False pickup by police mobile 87 6.34 Others 60 4.37 Total 1373 100 *Multiple Purposes Page 140 of 205

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1.2 Was any corruption faced by you/ your household? Response No. Percent Yes 1116 84.04 No 212 15.96 Total 1328 100.00 Page 142 of 205